In recent years, there has been growing attention on women investors in the financial world. As women control more wealth and assets, they are becoming an important force shaping investment trends and the overall market. Multiple reports have pointed out the rising power of women investors. For example, a 2022 survey by Fidelity Investments found that women now hold 51% of personal wealth in the U.S. This means women’s investment decisions and preferences could have significant influence. In this article, we will summarize some of the best news and developments regarding women investors to keep an eye on.
The growing assets and wealth controlled by women investors
As mentioned above, women now control the majority of personal wealth in America, marking a historic shift in who owns and manages money in households. The Fidelity survey found that between 2020 and 2022, the share of assets managed by women increased from 37% to 51%. This growth is largely driven by women’s increasing participation in the workplace and business world. With higher incomes and more inherited wealth, women simply have more investable assets now. According to CNBC, an estimated $30 trillion of women-controlled assets will be switching hands by 2030 as baby boomers pass on wealth. This clearly shows the rising power of women investors in directing capital.
Women investors prefer impact and ESG investments
Various surveys have shown that compared to men, women investors tend to prefer investments that have positive social or environmental impact. For example, a 2021 UBS survey found that 84% of women investors were interested in sustainable investing, more than 10% higher than male investors. The same survey also found women were much more likely to reallocate assets for ESG investing. As trillions of dollars shift towards women’s control in the coming years, their preference for responsible and ethical investing could transform the investment landscape.
Women investors are increasing retirement savings
While the gender investing gap still exists, women have made great progress in recent years when it comes to retirement planning and savings. According to Fidelity’s 2022 Retirement Analysis, the average retirement savings account balance for women was up 50% compared to five years ago. Women investors are contributing more to workplace retirement accounts like 401(k)s and IRAs. And more women are actively managing investments to build long-term wealth instead of relying on others.
From the growing assets they control to their preference for impact investing, women investors are becoming an undeniable force shaping markets and investment trends. As women live longer and make more financial decisions, their influence will only increase. All signs point towards women investors playing a bigger role.